Business

Dollar falls, shares gain on US optimism

The Australian dollar has lost significant ground against the greenback, after some positive economic signs out of the US.

The local currency was buying around 102.17 US cents shortly before 1:00pm (AEDT).

US measures of new home sales and consumer confidence both rose by more than expected for February, and postiive comments from the US Federal Reserve's chairman Ben Bernanke have also helped the Australian share market post solid gains.

The All Ordinaries index had gained 30 points, or 0.6 per cent, to 5,052, and the ASX 200 index was up 31 points at 5,036.

Gains have been shared between all sectors.

AGL Energy had jumped 3.9 per cent after the company doubled its half-year profit.

BHP Billiton had gained 0.9 per cent and Rio Tinto was up 0.5 per cent.

The major banks were also up, led by a 0.8 per cent rise for the Commonwealth.

Qantas had fallen 2.2 per cent and Virgin Australia had slipped 0.7 per cent.

Department store Myer was down 0.6 per cent and electronics retailer Harvey Norman had slipped 0.4 per cent.